Nordea 1 - European Alpha Fund - March 2008

 
Nordea 1 – European Alpha Fund

                                 March 2008
1st part - Content

    Is the process successful?

    How do we construct the portfolio?

    What are our views?

2
Is the process successful?

Ashburton European Equity Fund
Same investment philosophy, process and investment team
•      Top decile ranking in all years
       to date (since inception).                                           3-year performance chart (as of 22.02.2008)**
•      With an actual ranking of (in
       the Morningstar* Europe
       Equity Large Cap Blend
       Category) … :
       - No.5 year to date
       - No.2 over 1, 3, 5 years
       - No.2 since inception

•      5 Star (Morningstar Fund)

•      Achieved a 93% return over 3
       years vs a benchmark of 32%.

    * Data Source - © 2008 Morningstar, Inc. All Rights Reserved as of 22.02.2008, www.morningstar.co.uk.
    **Data Source- 2008 Bloomberg. All Rights Reserved as of 22.02.2008 . Performance is calculated NAV to NAV gross income reinvested, in EUR, excluding initial and exit
    charges as per 22.02.2008. Past performance is not necessarily a guide to the future and investors may not recover the full amount invested.

3
1st part - Content

    Is the process successful?

    How do we invest?

4
Investment philosophy

    “ We invest with conviction ”

5
Investment process

      Internal Feedback + Analyst Feedback + Independent + General Research

                       Growth                          Death of                   European/Global      Other
    Long Term          in Asia                         Cheap Oil                   Infrastructure

                  Increasing Food Req.                Alternative Energy             Security of Power
    Medium Term
                  Mining      Maritime           Oil Services    E+P Companies         Div.         Water
                                                                                  Infrastructure

                             Qualitative Research         Quantitative Research
                                 Analyst Input                     PE
    Short Term                Meet management                      PEG
                              (where possible)
                                                                   DCF
                                                                P/NAV… etc

6
Investment process

      Internal Feedback + Analyst Feedback + Independent + General Research

                       Growth                          Death of                   European/Global      Other
    Long Term          in Asia                         Cheap Oil                   Infrastructure

                  Increasing Food Req.                Alternative Energy             Security of Power
    Medium Term
                  Mining      Maritime           Oil Services    E+P Companies         Div.         Water
                                                                                  Infrastructure

                             Qualitative Research         Quantitative Research
                                 Analyst Input                     PE
    Short Term                Meet management                      PEG
                              (where possible)
                                                                   DCF
                                                                P/NAV… etc

7
2nd part - Current opportunities

A European Fund with a Global outlook
1.   The increasing relevance of ‘Global Trade’ to European Companies
           In 1982 Global Trade represented 18% of GDP. Today it represents 32%

8
More than just two cities…

9
Urban households by annual income (% total)

                        Global affluent (+$25,001)
                        Mass affluent ($12,501-25,000)
                        Upper-middle class (US$5,001-12,500)
                        Lower-middle class (US$3,001-5,000)
                        Poor (under US$3,000)
      100%
       80%
       60%
       40%
       20%
        0%
              1985       1995          2005           2015                 2025

                                                             Source: The Economist

10
2nd current opportunity

     Equity Cluster for “Growth of Asia”
                  Maritime

11
1st current opportunity

 The Dry Bulk Industry
 • Represents 38% of the world’s seaborne freight.
 • 67% of this freight is taken up carrying iron ore, coal and grain.
 • Invested in Belgian, Danish, Norwegian and Greek companies.

                                               100%
                                                90%
                                                       Other
                                                80%
                         Dry Bulk
                                                70%
                           38%                        Grain
          Other                                 60%
          62%                                   50%
                                                      Coal
                                                40%
                                                30%
                                                20%    Iron
                                                10%    Ore
                                                 0%

12
1st current opportunity

 Coal – Chinese Influence
 • China is building the equivalent of 5 Los Angeles a year.
 • 78% of Chinese power is derived from coal.
 • China is currently building 2 coal fired power stations A WEEK.
 • First time in 10,000 years the Chinese are net importers of coal.

13
1st current opportunity

 Iron Ore – Chinese Influence
 • China consumes 33% of the world’s iron ore.
 • In 1990 the Chinese consumed 5% of global seaborne freight, in 2001 this rose to 20%, it
   now represents a staggering 45%.

14
1st current opportunity

 Port Congestion
• Up to 13% of vessels (91/800) have been left
  waiting outside the Port of Newcastle.
• Iron Ore negotiations.
• Japanese Nuclear reactor and problems.
• Grain supply….creating fixture panic.

15
Diversity of Holding Period

     Port of Newcastle: Ship queue                        Dry Bulk Day Rates
                         Growth
                         in Asia

                     Mining     Maritime

                    RIO TINTO                       GOLDEN OCEAN

        4 YEARS (320% Return)              1YEAR (418% Return v buy and
                                                    hold 284%)

16
2nd part - Current opportunities

 How can a European Fund Invest in this theme
 •   Companies involved in Shipping
           DS Norden, DS Torm, Golden Ocean, Wartsilla, MAN,

 •   Mining and Metals Companies
           Rio Tinto, Anglo American, Norsk Hydro, Xstrata, Vedanta

 •   “Shortage of Food” related companies
           Syngenta, Bayer, K+S, Yara, BASF, Black Earth

                                                      Maritime
                                                                 Metals and
                                                        8%        Mining
                           Growth of
                           Asia, 34%                                15%

                                                                       Global
                                                                        Food
                                                                  Requirements
                                                                      10%

17
2nd part - Current opportunities

 European Fund
 Gorilla Views
 1.   Growth of Asia…in particular China

 2. Death Of Cheap Oil

18
2nd current opportunity

     The Challenge of Supplying Global Oil Demand Growth
                                                           • Supply – has grown to meet
                                                             a demand that is now over
                                                             82 million barrels a day
                  1000 barrels
                                                           • Spare Capacity- Normally
                  a second
                                                             the world operates with a
                                                             ‘cushion’ of spare capacity.
                                                           • Today this cushion is
                                                             extremely thin
                                                             (approximately 2m barrels a
                                                             day)
                                                           • The industry is currently
                                                             working at 97.5% utilisation

                                                           ……..future supply

19
2nd current opportunity

     Source: BP. Date: 29.12.2006

                                    • No major, cheap onshore oil
                                      discovery since 1975
                                    • Giants have been declining since
                                      the early ’80’s

                                    • Average amount of oil extracted
                                      (per well drilled) has declined
                                      since 2001.
20
2nd current opportunity

     The Challenge of Supplying Global Oil Demand Growth

                                                           • Supply….current operating
                                                             fields are declining at between
                                                             5- 8%.
                                                           • And cost of extraction is
                                                             increasing.

21
2nd current opportunity

 The Ghawar field – ‘the King of kings’
 • At over 3500 square kilometres it is the size of Mallorca.

22
2nd current opportunity

 The Ghawar field – ‘the King of kings’
 • At over 3500 square kilometres it is the size of Mallorca.
 • Over the last 60 years it has provided between 55-65% of Saudi Oil.
 • Started production in 1951 (cost $1.5-$2.5 a barrel).
 • Now cost is around $20-$25. 7m barrels of water.

23
2nd current opportunity

The Challenge of Supplying Global Oil Demand Growth

     Taking just the coastal 1/3 of China to the Korea / Japan level
     of 16 barrels/capita requires 20 mbd (or 2 Saudi Arabias at 100% capacity).

24
2nd current opportunity

     The Challenge of Supplying Global Oil Demand Growth

                                                           • Demand…World demand is
                                                             growing at between 1.5 –
                                                             2%.
                                                           • The World needs more oil
                                                             discoveries to meet this
                                                             area of required supply.
                                                           • The world needs to drill
                                                             offshore.

25
2nd current opportunity

     Equity Cluster for “Death of Cheap Oil”
              Oil Services offshore

26
2nd current opportunity

 Rig Fixtures for deepwater suggest a Super-cycle
                        • PDO are starting to pick up
                          (Planning Development Timeline)

     Source: Chevron    Source: Bloomberg. Date: 31.07.2007

27
2nd current opportunity

                             The Fund invests in
     “The Golden Triangle”       •Oil Services
                                      Ocean Rig, Awilco, Fred Olsen, Songa,
                                      Seadrill, Sevan Marine, Prosafe, PGS,
                                      Schoeller-Bleckmann
                                 •E+P Companies
                                      Cairn, Tullow, GALP, BG
                                 •Alternative Energy
                                      Solarworld, Qcells, Gamesa, Vestas,

                                            Death of   Oil E&P   Alternative   Oil Services
                                           Cheap Oil     7%        Energy           15%
                                             28%                     6%

28
2nd part - Current opportunities

 European Fund
 Gorilla Views
 1.   Growth of Asia…in particular China
 2.   Death Of Cheap Oil

 3. German / Global Infrastructure

29
Future opportunity

 European Infrastructure                         Development of Adriatic-Baltic,
                                                 Eurasian and INTERIM Land bridges
                                                 •   East Europe must accommodate
                                                     increased supply and distribution
                                                     pressures.
                                                 •   Networks bottleneck through Austria and
                                                     Germany;
                                                 •   €57 Billion German transport investment
                                                     (2006-2010).
                                                 EMERGING EUROPE

 •   Total cost of upgrading the Polish water
     system 16 Billion Euros (up to 2015);
 •   Construction of 320 wastewater treatment    •   Eighty Nuclear power plants in Eastern
     plants and 460 collective sewage systems.       Europe and former Soviet Union in need
 •   Upgrading 21,000km of water pipelines.          of renovation or replacement.

30
China is spending over $500bn on road
                                                          and rail infrastructure alone over the
                                                          next three decades.
 The Global Picture
     Over the next 5 years Brazil has
     a need for $30bn and due to
     their high national debt (50% of
     GDP) they are turning to the PPP
     model.

                                             India to spend
                                             $488bn in
                                             infrastructure over
                                             the next 5 years.

                                        $104bn (annual) has been
                                        committed by the Australian
                                        federal & state governments to
                                        infrastructure over the next 10
                                        years.
31
2nd part - Current opportunities

 How can a European Fund Invest in this theme
 •   Power
                       EDF, RWE, E.ON, Red Electrica
 •   Water
                       Veolia Environment, Suez, Weir Group

 •   General Infrastructure
                       Hochtief, Bouygues, Alstom, ABB, Vossloh

                                                         Water
                                                          3%
                                                  Power
                                                 Security
                                                   5%

                                                 Diversified
                                                 Infrastructure
      Infrastructure                             14%
           22%

32
Fund features

 Nordea 1 – European Alpha Fund
 Portfolio allocations (as of 11.02.2008)

       Macro drivers – Gorilla views                                            All Equity Clusters

                                                                                                          Maritime, 8%
                                                                    Water, 3%       Other, 13%                           Metals and
                        Cash, 4%                     Growth of                                                           Mining, 15%
     Other , 13%                                     Asia, 34%                               Cash, 4%
                                                                    Power
                                                                 Security, 5%

                                                                    Diversified                                                Global Food
                                                                                                  Alternative
                                   Death of Cheap                 Infrastructure,                                             Requirements,
     Infrastructure,                                                                              Energy, 6%
                                                                       14%                                      Oil Services,
          22%                         Oil, 28%                                                                                    10%
                                                                                    Oil E&P, 7%                     15%

     Source: Ashburton (Jersey) Limited. Date: 11.02.2008
33
Investment philosophy

     “ We invest, with conviction ”

34
Appendix - Ashburton - the sub-manager

 Two partners – one goal
 Nordea’s multi-boutique approach: choosing the right partners

 Building on the already existing strengths of a multi-boutique product offering by
 identifying, managing and securing the services of the best fund managers in the
 industry, Nordea has entered into a partnership with one of the most successful
 investment managers in the European Equity sector:
                             Ashburton (Jersey) Limited

35
36
Appendix - Investment process

            External and Internal Research

           Sector / Equity Cluster Allocation

     Stock Selection inside Sector / Equity Cluster

                 Portfolio Construction

     Risk Management’s policies & Sell Discipline

37
Appendix - Investment process

 External and Internal Research

 •   External input (avoids big international houses) via:
        -   Strong local brokers/analysts (expert external consultants) having a long industry
            experience in a specific sector with whom have been built close relationships and
            trust  over the years, a ‘’team’’ of analysts has been developed.

 •   Internal input via:
        -   Discussions with inter regional teams to exchange input from their analysts
        -   Weekly meetings with the ‘top down’ asset allocators to discuss the global pictures,
            i.e. the global economic cycle
        -   Monthly meetings with the CEO and Investment Director to review all aspects of the
            fund

     Internal Feedback + Analyst Feedback + Independent + General Research

38
Appendix - Content

     Ashburton (Jersey) Limited - the sub-manager

     Investment Process

     European Equity Team

     Current Fund Features

39
Appendix - Ashburton - the sub-manager

 Ashburton
 Consistent achievement, whatever the economic climate

 • Established in 1982, Ashburton (Jersey) Limited*, the investment managers, is
   centred in Jersey, the largest of the Channel Islands.
 • In 1998, Ashburton became part of an internationally renowned financial
   services organisation, the FirstRand Group (headquartered in Johannesburg).
 • Ashburton’s reputation has been built upon the achievement of consistent results,
   no matter how the stock markets are performing.
 • Ashburton’s Asset Allocation team (economists), whose objective is to analyse
   the global macro economic trends (‘top down’ view), is very strong and effective.
 • The Nordea 1 - European Alpha Fund will be sub-managed by the Ashburton
   European Equity team which is managing a product launched 10 years ago
   (on the 6th of January 1997) and whose performance has been exceptional.

 *As of the 26th of September 2007, the assets under management of Ashburton (Jersey) Limited were EUR 1.4bn.
40
Appendix - Investment process

 Stock Selection inside Sector / Equity Cluster
 Top-Down
 •   Investment Universe: companies incorporated in any European country and
     also securities traded in other markets where the underlying companies derive a
     significant proportion of their earnings from the European region.
 •   Growth at a Reasonable Price (GARP): to identify companies that are cheap
     relative to their growth prospect (growth is undervalued).

     Management’s             Earnings Revision
     Effectiveness               Momentum
                                                           Qualitative     Quantitative
                                                           Research         Research
                     ‘GARP’                               Analyst Input        PE
                                                        Meet management       PEG
                                                        (where possible)
                                                                              DCF
                              Earnings Quality
         Value                                                             P/NAV… etc
                                 and Trend

41
Appendix - Investment process

 Stock Selection inside Sector / Equity Cluster
 Top-Down
 •    Tools to assess Management’s Effectiveness:
      company visits - access to Top Management of companies through meetings with
      participation of analysts/specialists.
 •    Earnings Revision Momentum:
      particular reference to earnings revisions both at the sector and stock levels (changing
      views of analysts, particularly in respect to earnings revisions).
 •    Earnings Quality and Trend:
      measures to identify companies that have a robust and efficient capital structure and rising
      cash flow supporting a favourable trend in earnings per share. Source: Reuters
      Knowledge database (Reuters Brokers’ Research), Bloomberg, sector based conferences,
      analysis of financial statements.
 •    Value:
      to select companies with low share price relative to expected growth rate (PEG ratio1). We
      identify companies that are cheap relative to their peers and our estimation of the fair
      value, looking for growth in both earnings and book value (principal rationale to buy
      “Growth at a Reasonable Price”).
 1   Price/Earnings to Growth ratio
42
Appendix - Investment process

 Portfolio Construction

 •   Between 60 and 80 stocks – to diversify away specific risks.
 •   Investments between 1% and 1.5% of NAV – to minimise impact of losses
     from one particular stock.
 •   Average size of holding: 1.3%.
 •   Combine Large Cap stocks with Mid/Small Cap – no restriction with regard to
     the size of stocks.
 •   The benchmark, used as a reference point, does not dictate country, sector or
     stock weightings used in the portfolio. The MSCI European Model Portfolio is
     used purely as a guideline to sector allocations.

43
Appendix - Investment process

 Risk Management’s policies

 •   Top slicing: part of a position sold when an out performer becomes a too large
     part of the portfolio.
 •   Daily monitoring of stocks relative to their sector, index and benchmark. A
     drawdown of over 15% will normally lead to a sell (unless exceptional
     circumstances prevail), i.e. stop loss methodology.
 •   Minimum liquidity requirement: no position that constitutes over 20% of
     the average 90 day daily volume (in value terms).
 •   Use of options permitted for the purpose of Portfolio Insurance under specific
     circumstances.

44
Appendix - Investment process

 Sell Discipline

                 Fundamental                     Changes in view on sectors such as
                  change in                      negative EPS revision ratios*:
                 management
                  or strategy                     -   If the portfolio is over weighted in a
                                                      sector that is being relatively
                                                      downgraded  reduce part or total
                                                      exposure to this sector.
     Change in                    Valuation:
     earnings
                                                  -   Exception:
      quality     SELL          fair value has
                                been reached
                                                      to hold stocks of this downgraded sector,
     and trend                                        the investment team will need a solid
                                                      rationale. The reasons may include:
                                                        •   The stock held is being upgraded;

                   Negative                             •   The broad sector may be getting
                     EPS                                    downgraded, but the sub sector that the
                   revision                                 portfolio is invested in is being upgraded.
                    ratios*

45
Appendix - European equity team

 Nordea 1 – European Alpha Fund
 Investment Team

                Name                                               Title                                 Years with Ashburton

      Richard Robinson                     Head of Pan European Equities Team, Investment Manager                   7

       Nicky Ludlam                        Investment Manager                                                      14

                                   The Investment Managers are supported by the asset allocation team.

                           Richard Robinson – Head of Pan European Equities Team, Investment Manager
                           • Richard Robinson joined Ashburton in 2000 and is Head of the Pan European Equities team.
                           • Richard studied at the University of Wales College, Cardiff, before joining a Jersey private bank as a
                             security dealer.
                           • Richard holds the MSI (Dip) and is a Member of the Securities Institute. He also holds the Investment
                             Managers Certificate.
                           Nicky Ludlam – Investment Manager
                           • Nicky Ludlam joined Ashburton in 1993 and is part of the Pan European Equities team.
                           • Nicky previously worked for Ernst & Young, during which time she qualified as a Chartered Certified
                             Accountant.
                           • Nicky was previously part of the asset allocation team, focusing on management of the underlying
                             equity constituents of the core services of Asset Management and Advanced Portfolio Services.
                           • She also successfully ran Ashburton's Asia Pacific Fund for four years.

 Source: Ashburton (Jersey) Limited, Date: 31.08.2007
46
Appendix - Fund Features

 Ashburton European Equity Fund
 Ranked in the top decile of European Equities funds

     Offshore and International Funds                       31/01/2007                 31/01/2005                31/01/2003
     Equity Europe                                          31/01/2008                 31/01/2008                31/01/2008
                                                      %Chg Rank Decl %Chg Rank Decl %Chg Rank Decl
     MSCI Europe**                                     -13.3                     23.7                       66.7
     Ashburton European Equity PC€                     -2.4       9       1      84.0       1        1     164.5        4       1
     Sector average and number of funds***             -13.4    388              29.4      330              79.4     254

     Offshore and International Funds                            31/01/07                          31/01/05                         31/01/03
     Equity Europe                                               31/01/08                          31/01/08                         31/01/08
                                                        Sharpe                  Sharpe                  Sharpe
                                                      (Ann) (m)**** Rank Decl (Ann) (m)**** Rank Decl (Ann) (m)**** Rank Decl
     MSCI Europe**                                          -1.26                            0.27                              0.57
     Ashburton European Equity PC€                          -0.33          6       1         1.02           1       1          1.08          11      1
     Sector average and number of funds***                  -1.16        388                 0.36          330                 0.65         254

     Data Source - © 2008 Morningstar, Inc. All Rights Reserved, Offshore and International Funds database, Equity Europe.
     * This sub-fund is not authorised for public distribution in Continental Europe. ** Bloomberg, MSCI Europe price index (Bloomberg ticker: MXEU Index). *** Category average:
     Morningstar Equity Europe sector average. **** Risk free rate: 4.30%. Performance calculated NAV to NAV gross income reinvested, in EUR excluding initial charge as per
     31.01.2008. Past performance is not necessarily a guide to the future and investors may not recover the full amount invested.
47
Appendix - Fund features

 Nordea 1 – European Alpha Fund
 Top Ten Holdings (as of 31.01.2008)

                        Top Ten in %
                        Company                                  ISIN          Weight in %
                        D/S Norden                           DK0060083210             2.69
                        Golden Ocean                         BMG4032A1045             2.69
                        Rio Tinto                            GB0007188757             2.34
                        Peter Hambro Mining                  GB0031544546             2.33
                        Syngenta (CHF)                       CH0011037469             2.32
                        Songa Offshore                       NO0010268451             2.32
                        Xstrata Plc - GBP                    GB0031411001             2.12
                        Norsk Hydro NOK                      NO0005052605             1.97
                        Red Electrica De Espana              ES0173093115             1.96
                        Prosafe SE                           CY0100470919             1.92

                        Total                                                        22.66

     Source: Nordea Investment Funds S.A. Date: 31.01.2008
48
Appendix - Fund features

 Nordea 1 – European Alpha Fund
 Sector weightings (as of 11.02.2008)

     30%

     25%                                                          Underweight

     20%
                                                             Nordea 1 - European Alpha Fund       MSCI Europe (Net Return)
     15%

     10%

     5%

     0%
                                                                    gy

                                                                                                                         s
                                        gy

                                                                                                         re

                                                                                                                                       ls
                                                         s

                                                                                             es
                          ds

                                                                                rv
            at

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                                                      tie

                                                                                                                       ica

                                                                                                                                     ia
                                                                              Se

                                                                                                       Ca
           M

                                                                    lo

                                                                                           pl
                                     er
                        G

                                                                                                                                   nc
                                                 tili

                                                                  no

                                                                                            a
                                   En

                                                                                                                    cl
        sic

                         l

                                                                             m
                      ta

                                                                                                      th
                                                                                         St
                                                U

                                                                                                                                 na
                                                                                                                  Cy
                                                               ch

                                                                         om
      Ba

                      i

                                                                                                     l
                   ap

                                                                                                  ea

                                                                                                                               Fi
                                                                                     on
                                                             Te

                                                                                                              on
                  C

                                                                         C

                                                                                                  H
                                                                                     C

                                                                                                              C
     Source: Ashburton (Jersey) Limited, MSCI. Date: 11.02.2008
49
Appendix - Fund features

 Nordea 1 – European Alpha Fund
 Country weightings (as of 11.02.2008)

     40%
     35%                                                                         Underweight
     30%
     25%
     20%                                             Nordea 1 - European Alpha Fund                              MSCI Europe (Net Return)

     15%
     10%
     5%
     0%

                                                                                                                                        Netherlands

                                                                                                                                                                       Switzerland
              Norway

                                                                                                                                                               Italy
                                                                      Finland

                                                                                                             Ireland
                                                                                Belgium
                       Germany

                                                                                                                       Sweden
                                                           Portugal
                                                 Denmark

                                                                                                    others
                                 Emerg. Europe

                                                                                          Austria

                                                                                                                                Spain

                                                                                                                                                      France

                                                                                                                                                                                     UK
     Source: Ashburton (Jersey) Limited, MSCI. Date: 11.02.2008
50
Appendix - Fund features

 Nordea 1 – European Alpha Fund
 Market Cap. distribution (as of 11.02.2008)

     Source: Ashburton (Jersey) Limited, MSCI. Date: 11.02.2008
51
Appendix - Investment philosophy

 EPS1 Revision Ratios
 Offering some indications about future returns
 Financial analysts release stock EPS revisions to financial markets…

 The changing views of analysts, particularly in respect of earnings revisions, are given
 numerical values that are used to provide signals about the likely future direction of the
 share price of a company.

                     Excess Return vs. Negative EPS RR

                                       Positive EPS Revision           Excess Return:
                                       Ratios, i.e. above 1.           noticeable divergence depending
                                                                       on whether stocks have EPS
                                                                       Revision Ratios that are positive
                                        Negative EPS Revision
                                        Ratios, i.e. below 1.          vs. those that are negative (EPS
                                                                       revs over the last 3 months).

     1EPS   = Earnings per share
52
Appendix - Investment philosophy

 Positive EPS Revision Ratios confirm our views on sectors,
 but they do not determine alone investment decisions
                                                                                    Leaders vs. Laggards
 Skewing the portfolio towards those companies                                                  Fund       Benchmark
                                                                                              Weighting1   Weighting2
 with positive 3-month Earnings Revision Ratios                       Earnings Leaders

                                                                      Industrials                32%          11%

             EPS Revision Ratio broken down by sector                 Oil Services               19%         0.1%

                                                                      Basic Materials            12%          8%

                                                                      Financials                 8%           29%

                                                                      Weighting in Leaders      71%          48%
                                                                      Earnings Laggards

                                                                      Energy                     6%          8.9%

                                                                      Utilities                  4%           6%
                               MSCI Europe

                                                                      Consumer Discr.            4%           10%

                                                                      Telecom. Services          2%           6%

                                                                      Health Care                3%           8%

                                                                      Information Tech.          4%           4%

 Source: Merrill Lynch, Dresdner KB. Date: 28.09.2007                 Consumer Staples           3%           9%

     As of 28th of September 2007, 1 Ashburton Global Funds PCC
                                                                      Weighting in Laggards     27%          52%
     European Equity Fund PC, 2 MSCI Europe
53
Appendix - Investment philosophy

 Analysis shows in Europe correlation between sectors is
 much lower than correlation between countries
 •   Regional and sector correlation relative to
     the FTSE Eurotop 300                                             Portfolio Correlation vs. FTSE Eurotop 300

 •   Data regressed over 3 separate, 3-year          2000-2002
     periods (2000-2002, 2002-2004 & 2004-         (Bear market)

     2006)
 •   Countries taken represent 87% of the index       2002-2004

     and only countries with > 5% representation
     in the FTSE Eurotop 300 have been
                                                      2004-2006
     considered.
 •   Sectors = constituent sectors of the FTSE                 0.00          0.20           0.40    0.60        0.80        1.00
                                                                      Average country correlation   Average sector correlation
     Eurotop 300 and only includes those
     sectors with data for 4 years minimum.
                                                      Source: Bloomberg. Date: 29.12.2006

 •   The closer to 1, the greater the
     correlation to the FTSE Eurotop 300 (zero                        Lower correlation between sectors
     = no correlation).                                               versus the FTSE Eurotop 300

54
Contact Austria

 Nordea Investment Funds S.A.
 Repräsentanz Österreich
 Mahlerstrasse 7/2/24
 A-1010 Wien
 www.nordea.at
 nordeafunds@nordea.lu
 Freephone: 00800 43 39 50 00

55
Disclaimer

 The sub-funds mentioned are part of the Nordea 1, SICAV, an open-ended Luxembourg-based investment company (Société d'Investissement à Capital Variable),
 validly formed and existing in accordance with the laws of Luxembourg and with the European Community Directive 85/611/CEE of 20th December 1985. The
 custodian of the assets of the SICAV is Nordea Bank S.A., Luxembourg. Investments in the Nordea funds should be made on the basis of the current prospectus,
 which is available, along with the simplified prospectus, current annual and semi-annual reports, free of charge upon request from Nordea Investment Funds S.A.,
 562, rue de Neudorf, P.O. Box 782, L-2017 Luxembourg, from the local representatives or information agents, or from our distributors. The performance
 represented is historical; past performance is not necessarily a guide to the future and investors may not recover the full amount invested. A
 transaction involving a foreign exchange transaction may be subject to fluctuations of currency values which may affect the value of an investment. The minimum
 subscription amount is EUR 50 or the currency equivalent thereof. The value of shares can fluctuate and is not guaranteed. Investments in Emerging Markets
 involve a higher element of risk. Nordea Investment Funds S.A. only publishes product-related information and does not make any investment recommendations.
 Published by Nordea Investment Funds S.A., 562, rue de Neudorf, P.O. Box 782, L-2017 Luxembourg. Additional information for investors in Switzerland:
 The Swiss Federal Banking Commission (SFBC) has granted authorisation for the Nordea 1, SICAV to be publically distributed in and from Switzerland. The
 documents listed above, as well as the Articles of Association, are available free of charge from the Swiss Representative and Paying Agent, Nordea Bank S.A.
 Luxemburg, Zweigniederlassung Zürich, Mainaustrasse 21-23, CH-8008 Zürich. Telephone (+41) 44 421 42 42, Telefax (+41) 44 421 42 82. Additional
 information for investors in Germany: Information and Paying Agent in Germany is Nordea Bank Finland Plc, Niederlassung Deutschland, Grüneburgweg 119,
 D-60323 Frankfurt am Main. The above-mentioned fund documentation is also available on paper from here. Additional information for investors in Austria:
 Sub-paying Agent and Representative in Austria is the Erste Bank der Österreichischen Sparkassen AG, Graben 21, A-1010 Vienna. Additional information for
 investors in France: With the authorisation of the Autorité des Marchés Financiers (AMF) as per 11.03.2003, the Nordea 1, SICAV may be distributed to
 investors in France, as published in the Bulletin des Annonces Légales Obligatoire dated 19th March 2003. Centralising Correspondent in France is CACEIS
 Bank, located at 1-3, place Valhubert, 75013 Paris. Investors are recommended to research carefully before making any investment decision. Additional
 information for investors in Spain: The Nordea 1, SICAV is duly registered in the CNMV official registry of foreign collective investment institutions as
 authorised to be marketed to the public in Spain with number 340. In Spain, any investment must be made through the authorised distributors and on the basis of
 the information contained in the mandatory documentation that must be received from the authorised distributor of the SICAV prior to any subscription, or that may
 be obtained from the CNMV registries. Additional information for investors in Italy: In Italy, fund documentation as listed above are also available in Italy from
 the distributors and on the website www.nordea.it. The updated list of the distribution agents in Italy, grouped by homogenous category, is available at the
 distributors themselves, at the branches of Intesa Sanpaolo S.p.A. (located in the main towns of each region) and on the website www.nordea.it. Any requests for
 additional information should be sent to the distributors. Before investing, please read the prospectus carefully. It is recommended to read the last annual
 financial statement in order to be better informed about the fund's investment policy. For the risk profile of the mentioned sub-funds, please refer to the fund
 prospectus. Additional information for investors in the United Kingdom: Approved by Nordea Bank Finland Plc, London Branch, which is regulated by the
 FSA in the United Kingdom. Additional information for investors in Latvia: Representative and Paying Agent is Nordea Bank Finland Plc, Latvia Branch, 15,
 Kalku Street, LV-1050 Riga. Additional information for investors in Estonia: Representative and Paying Agent in Estonia is Nordea Bank Finland Plc, Estonia
 Branch, Hobujaama 4, 15068 Tallinn. Additional information for investors in Lithuania: The Representative and Paying Agent in Lithuania is Nordea Bank
 Finland Plc, Lithuania Branch, Didzioji str. 18/2, LT-01128 Vilnius. Shareholders must evaluate possible investment risks and take this into consideration when
 making investment decisions. Source: Nordea Investment Funds S.A. Performance calculated NAV to NAV (net of fees and Luxembourg taxes) gross income
 reinvested, in the base currency of the subfund, excluding initial and exit charges as per 31/01/2008. Unless otherwise stated, all views expressed are those of
 Nordea Investment Funds S.A. This document may not be reproduced or circulated without prior permission and must not be passed to private investors. This
 document contains information only intended for institutional investors and independent financial advisers and is not intended for general publication. Reference to
 companies or other investments mentioned within this document should not be construed as a recommendation to the investor to buy or sell the same, but is
 included for the purpose of illustration.
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